environmentally friendly and make higher-quality
and higher value-added products. As a complement to petrochemicals, modern coal chemicals
can bring the benefits of China’s coal resources
into play, reduce dependency on oil imports and
strengthen China’s energy security. China’s
modern coal chemical industry has made
impressive progress since the 1990s. Technologies have been successfully tested in demonstration projects and upgraded to industrial-scale
production facilities. Major breakthroughs have
been made in advanced coal chemical synthesis,
domestic coal chemical technologies have been
commercialised and catalysts developed—all in
China. All these advances have laid strong foundations for a clean, efficient and economically
viable modern coal chemical industry.
5.1.3 Optimal Paths for Coal
Consumption
The cleanest and most efficient ways to use coal
are in power generation, coal-to-oil and
coal-to-gas. In terms of energy efficiency, using
coal-fired electricity to power electric vehicles is
more efficient (28.6%) than using coal-to-oil for
oil-fuelled vehicles (19.2%) and coal gas for
gas-fuelled vehicles (13.3%). In terms of vehicle
operating costs, if the oil products, natural gas
and electricity are priced at RMB 7.72 per litre,
RMB 3.1 per cubic metre and RMB 0.68 per
kWh respectively, the operating cost of
oil-fuelled buses is the highest at RMB
524,100/year, followed by buses fuelled with
compressed natural gas at RMB 355,600/year
and electric buses at RMB 352,000/year. As
China’s natural gas industry becomes increasingly market-oriented, higher gas prices will be
inevitable. Therefore, using coal-fired electricity
to power electric vehicles is the most
cost-competitive option. In terms of safety, oil
and natural gas pose higher safety risks in storage, transport and use, while power generation,
transmission, distribution and consumption are
relatively safe. This makes coal-fired electricity
for electric vehicles the safest option.
Coal-to-electricity is the safest and most
cost-effective and environmentally friendly way
to use coal. To achieve the goals of the energy
revolution, China should follow the coal-based
and electricity-centred guiding principles of
substituting electricity for poor quality coal and
using higher quality coal cleanly and efficiently.
Meanwhile, China should continue to develop
modern coal chemical technologies, including
coal-to-oil, coal-to-gas and coal-to-olefins.
Use efficient and ultra-low-emission coal-fired
power generating plants at scale. China should
speed up development of large coal power bases,
especially 100 Mt coal bases and 10 GW
coal-fired power generation bases, and
long-distance large-capacity power transmission
systems (the West-East and North-South power
transmission projects). China should also allow
private enterprise to develop large, clean
coal-fired power plants in major load centres like
the Beijing-Tianjin-Hebei region, the Yangtze
River Delta and the Pearl River Delta in accordance with the environmental requirements of
ultra-low emissions.
Build combined heat and power (CHP) and
combined cooling, heat and power (CCHP)
plants. CHP and CCHP plants achieve two
objectives: (i) they significantly improve coal use
efficiency and the economy of thermal power
plants; and (ii) they can reduce emissions and
pollution by replacing a large number of small
coal-fired boilers used for heating. The
non-power sectors should reduce their use of
scattered coal and increase the amount of electricity in their energy consumption. The use of
coal-fired industrial boilers in the iron and steel,
chemical and building material sectors should be
strictly controlled. Secondary energy should be
supplied by centralised power plants. CHP and
CCHP should be used in heating and cooling
load centres like urban centralised heating areas
and industrial parks.
After years of development, China’s modern
coal chemical industry has made major progress
in four areas. First, independent coal gasification
technologies have been widely deployed. More
than 100 locally manufactured gasifiers are in
operation, including opposed multi-burner gasifiers, HT-L pulverised coal gasifiers and
two-stage dry pulverised coal gasifiers. Second,
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Y. Jianlong and M. Haigh
and higher value-added products. As a complement to petrochemicals, modern coal chemicals
can bring the benefits of China’s coal resources
into play, reduce dependency on oil imports and
strengthen China’s energy security. China’s
modern coal chemical industry has made
impressive progress since the 1990s. Technologies have been successfully tested in demonstration projects and upgraded to industrial-scale
production facilities. Major breakthroughs have
been made in advanced coal chemical synthesis,
domestic coal chemical technologies have been
commercialised and catalysts developed—all in
China. All these advances have laid strong foundations for a clean, efficient and economically
viable modern coal chemical industry.
5.1.3 Optimal Paths for Coal
Consumption
The cleanest and most efficient ways to use coal
are in power generation, coal-to-oil and
coal-to-gas. In terms of energy efficiency, using
coal-fired electricity to power electric vehicles is
more efficient (28.6%) than using coal-to-oil for
oil-fuelled vehicles (19.2%) and coal gas for
gas-fuelled vehicles (13.3%). In terms of vehicle
operating costs, if the oil products, natural gas
and electricity are priced at RMB 7.72 per litre,
RMB 3.1 per cubic metre and RMB 0.68 per
kWh respectively, the operating cost of
oil-fuelled buses is the highest at RMB
524,100/year, followed by buses fuelled with
compressed natural gas at RMB 355,600/year
and electric buses at RMB 352,000/year. As
China’s natural gas industry becomes increasingly market-oriented, higher gas prices will be
inevitable. Therefore, using coal-fired electricity
to power electric vehicles is the most
cost-competitive option. In terms of safety, oil
and natural gas pose higher safety risks in storage, transport and use, while power generation,
transmission, distribution and consumption are
relatively safe. This makes coal-fired electricity
for electric vehicles the safest option.
Coal-to-electricity is the safest and most
cost-effective and environmentally friendly way
to use coal. To achieve the goals of the energy
revolution, China should follow the coal-based
and electricity-centred guiding principles of
substituting electricity for poor quality coal and
using higher quality coal cleanly and efficiently.
Meanwhile, China should continue to develop
modern coal chemical technologies, including
coal-to-oil, coal-to-gas and coal-to-olefins.
Use efficient and ultra-low-emission coal-fired
power generating plants at scale. China should
speed up development of large coal power bases,
especially 100 Mt coal bases and 10 GW
coal-fired power generation bases, and
long-distance large-capacity power transmission
systems (the West-East and North-South power
transmission projects). China should also allow
private enterprise to develop large, clean
coal-fired power plants in major load centres like
the Beijing-Tianjin-Hebei region, the Yangtze
River Delta and the Pearl River Delta in accordance with the environmental requirements of
ultra-low emissions.
Build combined heat and power (CHP) and
combined cooling, heat and power (CCHP)
plants. CHP and CCHP plants achieve two
objectives: (i) they significantly improve coal use
efficiency and the economy of thermal power
plants; and (ii) they can reduce emissions and
pollution by replacing a large number of small
coal-fired boilers used for heating. The
non-power sectors should reduce their use of
scattered coal and increase the amount of electricity in their energy consumption. The use of
coal-fired industrial boilers in the iron and steel,
chemical and building material sectors should be
strictly controlled. Secondary energy should be
supplied by centralised power plants. CHP and
CCHP should be used in heating and cooling
load centres like urban centralised heating areas
and industrial parks.
After years of development, China’s modern
coal chemical industry has made major progress
in four areas. First, independent coal gasification
technologies have been widely deployed. More
than 100 locally manufactured gasifiers are in
operation, including opposed multi-burner gasifiers, HT-L pulverised coal gasifiers and
two-stage dry pulverised coal gasifiers. Second,
268
Y. Jianlong and M. Haigh